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Sydney has lost the crown as the most attractive capital city to invest property dollars in, according to new research.
In the latest Finder RBA Cash Rate Survey, leading experts and economists were asked where they would invest $500,000 in property.
Finder’s insights manager, Graham Cooke, said the vast majority of economists are now steering clear of advising investment in Sydney.
“Sydney has traditionally been Australia’s darling in the property market, but it is no longer the belle of the ball,” he commented.
Sydney and Canberra received 14 per cent of the votes apiece, while Adelaide and were the least enticing to the experts, with just 9 per cent of the votes.
While Finder’s insights manager acknowledged the depreciated value of Sydney’s property market, he believes this has not enticed investors back into the market.
“Prices have just started to recover after falling nearly 15 per cent from the heady days of 2017, but sales volumes are still low and many investors and potential sellers are in a holding pattern,” he outlined.
According to Mr Cooke, the high price of property compared with income levels is still keeping property investors away from the Sydney market.
He considered this as the reason why the Sydney market has been somewhat slow to bounce back compared to other east coast capital cities.
Despite the slower recovery, Mr Cooke indicated a belief that Sydney is showing some signs of life.
“On the bright side, both prices and auction clearance rates are slowly heading in the right direction in the Harbour City, but these results indicate that the previous market highs are still a way off,” Mr Cooke concluded.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.